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Iran cancels $2.5 billion Chinese oil contract

The Associated Press

Updated:
04/30/2014 05:17:48 AM EDT

TEHRAN, Iran (AP) — Iran's official IRNA news agency says the country has canceled a $2.5 billion deal with a Chinese state oil company over what authorities say were delays in fulfilling its contractual obligations.

The state-owned China National Petroleum Corporation had signed a contract with Tehran in 2009 to develop the giant Azadegan oil field in the southwest of the OPEC member state.

Wednesday's report from IRNA says Iran's oil ministry had given the Chinese company 90 days to meet its obligations or face expulsion from the project. When that did not happen to Iranian satisfaction, IRNA says officials decided to terminate the project.